If this is your first visit, be sure to
check out the FAQ by clicking the
link above. You may have to register
before you can post: click the register link above to proceed. To start viewing messages,
select the forum that you want to visit from the selection below.

PGP Pricing Policies (Stink!)

I'm a newbie, so if I've posted this in the wrong place, my apologies in advance.

SET RANT ON

Last year I purchased 10 licenses to PGP for my company. The nature of our business requires encryption of electronically transmitted data under federal mandate. We have about 20 business partners also using PGP with which we exchange encryption keys.

Recently I received an email notice that the licenses were expiring along with an invitation to renew.

The price had gone from $65 to $80 -- no big deal, inflation casts shadows into every lighted room. However, a new pricing scheme was presented that seemed to be saying I could purchase a perpetual license. All I had to do was pay $165 per license and it would never expire.

I thought this was pretty neat. There was also something called Upgrade Insurance for an additional $300. I ignored that. If I want a particular upgrade I'll pay for it on an individual basis and PGP doesn't require that everyone have the same version to work.

I called the reseller who was more than willing to take my $1,650 for ten perpetual licenses. Then he told me that I would be "well advised" to purchase the upgrade insurance. When I asked why, he said that "PGP Corporation will force you to pay for the Perpetual License again if you want to upgrade and haven't bought the Upgrade Insurance." Then he told me that the upgrade insurance had to be purchased annually.

So, the deal is, the "Perpetual License" is a misnomer at best, and a scam at the worst. If I pay for a perpetual license at version 8.0, and decide I want to upgrade to 9.0 when it comes out I pay another $1,650 (assuming no inflation). To protect myself from my PERPETUAL license EXPIRING (isn't that an oxymoron?) I have to buy Upgrade Insurance every year.

The cost of the Upgrade Insurance is NOT the issue. The issue is that PGP Corporation apparently does not understand the meaning of the word "perpetual" (or, they fully understand it and are relying on the ignorance of their installed base).

I have to put up with this stuff from M$, now I have to put up with it from a weenie company like PGP Corporation. I considered looking for an alternative, but after canvassing the 20 business partners about the possibility of changing encryption software I realized that PGP Corporation has a captive audience -- they have become a de-facto standard -- at least within my industry.

Lots of software requires you to buy the newer versions when they are released, the perpetual license would give you a permanent v8 lic? I don't like it, but i can see why they would then make you buy v9. New version = new product (in some peoples eyes)...

what would be better would be an upgrade version v8-v9, that's say 1/2 the cost of full v9.. that'd be better, will it happen? only if enough people complain and they feel that they won't get repeat business on newer versions.

Originally posted here by g00n Lots of software requires you to buy the newer versions when they are released, the perpetual license would give you a permanent v8 lic? I don't like it, but i can see why they would then make you buy v9. New version = new product (in some peoples eyes)...

what would be better would be an upgrade version v8-v9, that's say 1/2 the cost of full v9.. that'd be better, will it happen? only if enough people complain and they feel that they won't get repeat business on newer versions.

Lots of companies DO require you to buy the newer versions -- in fact, most companies do. There's nothing wrong with that.

What would be best in this case is NOT linking Upgrade Insurance to the Perpetual License. I mean, sell me a perpetual license that is truly perpetual. Then when I get ready to buy an upgrade, sell me an upgrade at a price that is reduced from the cost of the first time purchaser -- thereby rewarding me for product loyalty. If somewhere along the line I decide I want all upgrades in a given year for a one-time-per-year price THEN sell me Upgrade Insurance.

Software publishers SHOULD make money off of each version -- that's what encourages continued development. But they should do so by setting reasonable pricing strategies that do not appear depend on the gullibility of their customers. Making customers mad doesn't promote product loyalty.

The problem with PGP and not going with the Upgrade Insurance is that PGP 7 does not work in Windows XP. We had perpetual licenses with PGP 7 and then when we migrated to XP for the new machines I had to purchase upgrade licenses. I upgraded the licenses and gave up on perpetual because I bet in another year or two I will need to get a new PGP to work with Windows.

Originally posted here by Louie The problem with PGP and not going with the Upgrade Insurance is that PGP 7 does not work in Windows XP. We had perpetual licenses with PGP 7 and then when we migrated to XP for the new machines I had to purchase upgrade licenses. I upgraded the licenses and gave up on perpetual because I bet in another year or two I will need to get a new PGP to work with Windows.

Ah, rats! PGP Corporation is sounding more and more M$-like! That's a heads up, Louie, thanks! We haven't moved to XP yet and neither have any of our business partners. We're all using 7.1.

If I could get the companies with whom we share encryption keys to move off the PGP standard GnuPG would be a great alternative. Unfortunately PGP seems entrenched -- which probably accounts for their arrogance.

I'll tuck GnuPG away for future reference and as new EDI relationships are formed wheel it out as an alternative. I hate having two encryption packages to work with -- but not as much as I hate giving new business to companies like PGP Corporation.